As every day ticks by without an agreement to raise the debt ceiling, the White House and Congress flirt with the risk of a default on the federal government's debt.
This prospect is catastrophic, with the potential to send shockwaves throughout the U.S. economy.
Moreover, the effects wouldn't be confined within the US; it would also compromise our position as the leading global superpower.
As China escalates its assertiveness, leaders in the White House and Congress need to consider the ramifications of their decisions on the global stage.
There's no doubt that the Chinese Communist Party is keenly observing the unfolding debt ceiling discussions — gleefully anticipating potential political fallout, much like a villain in an animated movie.
A default from America would cast doubt on the U.S. dollar's status as the global reserve currency. A U.S. default would be a dream come true for China. Beijing has been attempting for years to dethrone the dollar as the dominant global currency.
Recently, a deal was struck between China and Brazil to discard the dollar in bilateral trade, opting instead for the Chinese Yuan.
However, China's efforts to supplant the dollar as the global currency haven't been particularly successful.
The dollar has a robust, reliable history of safety and dependability.
The U.S. has consistently upheld and repaid its debts punctually.
However, this impressive record of fiscal responsibility could be jeopardized if the White House and Congress can't strike a deal to raise the debt ceiling.
If the dollar loses its perceived safety and stability, nations may begin to search for alternatives, and China would seize such an opportunity.
Should the Yuan surpass the dollar as the global reserve currency, it would amount to ceding control of the global economy to China.
Handing over such economic leverage to the Chinese Communist Party would not only jeopardize our country's economic health but also destabilize the Western world.
This self-inflicted error could incite chaos, upset the international equilibrium, and possibly jeopardize America's status as a preeminent global superpower.
A China-dominated world economy could spell disaster for our nation and must be averted at any cost.
China's economic growth trajectory has positioned it as a powerhouse in the global economic system.
One of its most ambitious initiatives to consolidate and expand its economic influence is the Belt and Road Initiative (BRI), launched in 2013.
This multi-billion-dollar project aims to connect Asia with Africa and Europe via land and maritime networks to facilitate international trade.
Through the BRI, China is investing in infrastructure projects in more than 60 countries, comprising 60% of the world's population and about a third of the global GDP.
The scope of this project, which includes constructing roads, ports, railways, pipelines, and more, amplifies China's potential influence in these regions.
The BRI's projects extend China's economic reach and solidify its position as a central trade hub.
For instance, the development of the China-Pakistan Economic Corridor (CPEC) links China's landlocked western provinces to Pakistan's Gwadar Port, thus giving China direct access to the Arabian Sea.
This bypasses the Strait of Malacca, a key maritime chokepoint, and therefore increases efficiency and reduces the cost of shipping goods.
Other projects like the Port of Piraeus in Greece and the Hambantota Port in Sri Lanka further strengthen China's strategic foothold in significant global trade routes.
However, the Belt and Road Initiative has also faced criticism for creating significant debt burdens for the countries involved, a situation sometimes referred to as "debt-trap diplomacy."
Countries like Sri Lanka, which couldn't repay their debt, have had to lease vital infrastructure to China, thereby increasing China's economic control.
Furthermore, through the BRI, China is exporting its technological and industrial standards, fostering dependencies that may eventually shape the global economic landscape.
By utilizing its financial resources and economic prowess through the BRI, China is strategically maneuvering to dominate the world economy.
Deliberately surrendering the world's reserve currency status to the Yuan — essentially granting Beijing control over the global economy – is as unpatriotic as it gets.
President Ronald Reagan demonstrated the effectiveness of peace through strength, a strength that extended beyond military prowess to include economic stability.
If current leaders fail to reach a compromise that would raise the debt ceiling, leading to economic instability, the peaceful stability Reagan tirelessly built could be compromised.
The ripple effects of a default would be felt well beyond our shores.
A default could compromise national security, empower our adversaries, and cause global economic tremors.
With time running out for an agreement, it's crucial that Congress, alongside the president, act swiftly and decisively — there's no time left for delay.
Americans everywhere are depending on their leaders to find a responsible resolution to this issue. Our detractors in Beijing are the only ones cheering for our failure.
The urgent need for collaboration and goodwill is more evident than ever. But primarily, both sides need to agree that both default and tax increases are off the table, and stay off.
Given the high stakes, failure isn't an option. With the fiscal future of America at stake, it's imperative that both sides cooperate to ensure our nation's vital interests are protected.
(Related articles may be found here, and here.)
Andrew Langer is president of the Institute for Liberty.
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